No ... that equation ensures that the wave propagates.
a sphere have a surfacce area of 4*pi*r*r . As the wave spreads r increase, thus the surface area increase. The initial point source energy is now integrated over a larger area.
Propagation Constant = Attenuation constant(Real) + Phase Constant(Imaginary).
For the above mention, attenuation is min if not zero for vacuum.
Power loss due to spreading is not consider an attenuation as conservation of energy still holds for a given solid angle.
Do you mean to say, a EM (plane wave) at normal incidient angle with a boundary ?
Yes. There would be standing wave as explain by Fresnel reflection and refraction.